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SCB chief reveals details of EGP 250m cash investment fund launch - Daily News Egypt

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SCB chief reveals details of EGP 250m cash investment fund launch

New fund provides effective tool in cash management field, provides tax benefits, says bank chief


The Suez Canal Bank (SCB) is preparing to launch its first cash investment fund with a target size of EGP 250m, according Hussein Refaey, Chairperson and Managing Director at the bank.

The new fund comes as part of the bank’s strategy to diversify its portfolio of products and services offered to its current and targeted corporate and individual clients.

He explained that the new fund aims to provide a saving and investment vessel that furnishes daily cash for clients, both companies and individuals, by calculating a cumulative daily return on the invested funds.

The fund allows for daily subscription and redemption in the investment securities it issues.

Refaey added that the fund will invest its capital in highly liquid short- and medium-term monetary financial instruments, such as bonds, treasury bills, bank deposits, financing instruments and savings certificates.

He pointed out that the fund follows an investment policy aimed at maximising the return, while preserving the invested funds so they can easily be liquidated. This would take into account the reduction of investment risks, through the distribution of investments.

Refaey explained that the bank has entrusted the fund’s management to CI Capital Asset Management, a subsidiary of CI Capital Holding, a leading company in investment funds and stock portfolios in the Egyptian market.

He pointed out that the fund’s launch comes as part of the bank management’s strategic direction towards expanding investment services and non-banking financial services. It also looks to help the bank keep pace with the ongoing changes and developments in these areas.

Refaey noted that the fund has many advantages, which are appropriate for a wide segment of clients, whether from companies or individuals. It provides an effective tool in the Cash Management field, as well as providing tax benefits.

The SCB was established as a commercial bank in 1978. It provides a diverse and integrated package of financial, banking and investment services and products to its individual and institutional clients. It has branches in most of the governorates of Egypt, as well as a wide network of correspondents covering all parts of the world.

The bank’s financial statements for fiscal year (FY) 2019/20 illustrate its success, for the first time since its inception, in achieving a net profit of EGP 542m. The bank’s total assets recorded about EGP 52bn in the same fiscal year.

The record of net customer deposits with the bank stands at about EGP 44bn, with a loan portfolio of about EGP 15.4bn.

The bank’s capital was increased to EGP 2.2bn as part of its expansion strategy, representing an increase of EGP 200m, which was fully funded from the shareholders’ share in FY 2019/20 profits.

The results of the bank’s activities for the first quarter of FY 2019/20 also showed that the total equity reached EGP 3.28bn, and achieved a net profit of EGP 114.3m.

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https://dailyfeed.dailynewsegypt.com/2020/07/04/scb-chief-reveals-details-of-egp-250m-cash-investment-fund-launch/
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